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crypto.news 2025-04-22 13:57:42

Will the rising Japanese yen affect Bitcoin and altcoin prices?

The Japanese yen continued its strong surge against the U.S. dollar as investors embraced its role as a safe-haven asset. The USD/JPY exchange rate plunged to 139.92 on Tuesday, its lowest level since September last year and 11.5% below its highest point in 2024. This decline aligns with the broader weakness of the U.S. dollar and a surge in other developed-world currencies such as the euro, British pound, and Swiss franc . The US dollar Index, a popular gauge that weighs its performance against a basket of currencies, fell to $98, its lowest point since April 2022. The ongoing yen rally is having significant ripple effects on equities, Bitcoin, and altcoins. In an X post, BitMEX co-founder Arthur Hayes noted that this performance will push leveraged traders to unwind positions in U.S. stocks and bonds, ultimately leading to higher bond yields. I know Team Trump wants a weaker dollar, but a rapidly strengthening $JPY causes leveraged traders to unwind positions in US stocks and bonds. Thankfully $BTC knows that if bond yields rise, the BBC must print money. Yachtzee 😘😘😘😋😋 pic.twitter.com/9PAY40b2O5 — Arthur Hayes (@CryptoHayes) April 22, 2025 There are already early signs this is unfolding. U.S. stock prices have sharply declined, with the Nasdaq 100, S&P 500, and Dow Jones indices falling into technical correction territory. You might also like: Trump Media teams up with Crypto.com to launch digital asset ETFs According to the Financial Times , Japanese investors have offloaded over $20 billion in international bonds. Most of these sales were in US government bonds. These activities are watched closely because Japan is the biggest holder of US debt, worth $1.1 trillion. A key driver behind these sales is the strength of the yen and rising bond yields in Japan. The country’s 10-year government bond yield has risen to 1.30%, sharply higher than the lows seen last year. Bitcoin is slowly becoming a safe haven According to Hayes, the surging yen and the plunging US dollar will benefit Bitcoin ( BTC ) as the Federal Reserve will be forced to print money using quantitative easing. Meanwhile, there are increasing signs that Bitcoin is gradually evolving into a safe-haven asset. Spot Bitcoin ETFs recorded over $381 million in inflows on Monday, following $107 million on Friday. These inflows coincided with a sharp drop in the Dow Jones Industrial Average, which fell by more than 1,000 points. Bitcoin has also dropped by less than 3% this year, while the top US indices have fallen by double digits. As such, some analysts believe that it will eventually evolve into a safe-haven asset, similar to gold. Such a move would lead to higher altcoin prices. Historically, altcoins like Ethereum ( ETH ), Solana ( SOL ), and Pepe ( PEPE ) tend to perform well when Bitcoin is thriving. You might also like: Coinbase confirms it is ‘actively considering’ U.S. banking license

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